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IIA Essentials of Internal Auditing Sample Questions (Q682-Q687):

NEW QUESTION # 682
A chief audit executive assigned an internal auditor to perform an assurance engagement. The auditor concluded with a major audit finding based on hearsay evidence Which of the following competencies did the auditor appear to be lacking?

A. Demonstration of due professional care.
B. Effective communication skills
C. Demonstration of ethical behavior
D. Risk-based assurance knowledge

Answer: B

NEW QUESTION # 683
An internal auditor creates a professional development plan to obtain more experience in the organization's environmental, social, and corporate governance initiatives. Which of the following would the auditor include in the plan to support these objectives?

A. A deadline within the individual development plan to meet the overall engagement objectives.
B. A request to attend the organization's committee meeting that is focused on strategic community awareness.
C. A plan to perform a variety of engagements to develop general skills that could be used to assess environmental, social, and governance initiatives.
D. A plan to study for and obtain a certification in nonprofit management.

Answer: C

NEW QUESTION # 684
At the beginning of fieldwork in an audit of investments, an internal auditor noted that the interest rate had declined significantly since the engagement work program was created.
The auditor should:

A. Determine the effect of the interest rate change and whether the program should be modified.
B. Modify the audit program and proceed with the engagement.
C. Consult with management to verify the interest rate change and proceed with the engagement.
D. Proceed with the existing program since this was the original scope of work that was approved.

Answer: A

NEW QUESTION # 685
According to The IIA's Code of Ethics, which of the following statements is true?

A. When an internal auditor releases required information to a regulator, resulting in a significant loss through fines and penalties for the organization, he fails to add value.
B. When an internal auditor disagrees with the treatment received by workers in the organization's foreign subsidiary and alters the audit program to highlight the issue, he fails to demonstrate objectivity.
C. When an internal auditor continues with an audit engagement, despite the audit client's claims that the work performed is unnecessary and redundant he fails to demonstrate competency.
D. When an internal auditor limits the scope of the audit engagement after learning that management is hiding relevant information, he demonstrates integrity.

Answer: B

NEW QUESTION # 686
Which of the following would provide the best evidence of errors in the quantities of items received from suppliers?

A. Warehouse receiving logs.
B. Purchase requisitions and purchase orders.
C. Observation and inspection of inventory.
D. Suppliers' reports of over shipments.

Answer: A

Explanation:
Section: Volume E

NEW QUESTION # 687
......

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